Proceedings of 7th Asia-Pacific Business Research Conference
25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0
The Relationship of Learning Organization, Knowledge
Management and the Performance of Rajabhat
Universities’ Hotel Business in Thailand
Supanchalee Onchaiya*
The objectives of this research are 1) to examine the relationship of learning
organization, knowledge management and the performance of Rajabhat
Universities’ hotel business in Thailand and test the model with empirical analyses,
and 2) to illustrate an approach to study the performance of Rajabhat Universities’
hotel business in Thailand. Both a quantitative approach and a survey approach
were undertaken, drawing a sample by means of multi-stage sampling method.
The responses included 298 members of directors, managers, and staff of
Rajabhat Universities’ hotel business in Thailand. Structural Equation Model
(SEM) technique was employed to analyze the survey data. The variable factors to
test the relationship comprised 3 dimensions, including 1) learning organization, 2)
knowledge management, and 3) business performance. The test results showed
that the measurement model was valid and well-fit to the empirical data and that
the model exhibited acceptable levels of fit. Overall, the research findings
indicated that the learning organization and knowledge management have positive
relationship with operating performance of the hotel business. Knowledge
management contributes the most to the operating performance, followed by
learning organization. In addition, learning organization is found to have positive
indirect impact on operating performance of the business as well. Hence,
management should focus on learning organization and knowledge management
since they are key to enhance organization’s operating performance. By using
information technology to support learning organization, employees can improve
their skills, enhancing efficiency and effectiveness. Management should also set
the policy to support knowledge management in the organization, starting from
motivating employees to acquire and create knowledge and then encouraging
them to share with each other and applying their knowledge.
Keywords: Learning
Organization, Knowledge
Management,
Performance, Rajabhat Universities’ Hotel Business in Thailand
Business
1. Introduction
Hotel business differs from other businesses in that hotel business provides
accommodation and facilities to visitors on a continuous basis; hotel business
services are intangible, inseparable, perishable, and variable. Hotel business has no
ownership and no office hour. (Blayney 2009, Walker 2010). Hotel business services
aim at customer satisfaction which would lead to customer loyalty and profitability.
Rajabhat Universities have established hotel business management program, aiming
mainly to be a vocational training center or an internal hotel facilities to support
vocational training for students in all related fields. The hotel business provided such
accommodation, meeting and seminar venues, dining room, and other services
would be a source of income for activities of the vocational training center or other
activities of Rajabhat Universities’ hotel business management program. This would
enhance the Universities’ potential and self-funding ability, given decreasing
government budget allocation and rather limited government investment in university
development.
*Dr.Supanchalee Onchaiya, Faculty of Management Sciences, Uttaradit Rajabhat University,
Thailand. Email: supanchalee@hotmail.com
Proceedings of 7th Asia-Pacific Business Research Conference
25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0
The hotel business operations in each Rajabhat University are very different, even
though they are under the same vision, mission, policy and rule. Many researches
find that learning organization has great influence to operation of an organization.
(Harnandaz 2000, Collie 2002, Davis 2005, Chajnacki 2007, Herrera 2007). Learning
organization concept is important to all organizations, especially Rajabhat
Universities and their hotel business programs. Success of Rajabhat Universities’
hotel business must rest upon different strategies from other hotel business by filling
gaps in the market, with a more flexible structure. Moreover, learning organization
concept would promote more sustainable development of an organization, (Garvin
1998, Takeuchi and Nonaka 2004, Jones 2007). Learning organization would
enhance learning capability and innovation so as to achieve a specified objective as
mentioned by Marquardt and Reynolds (1994) that “under intense competition,
learning organization is key to bring an organization to success in operation”, and as
mentioned by Marquardt (2002) that an organization’s learning capability is key to
lead an organization to become a learning organization. In order to survive, an
organization must keep on learning and adapting at a quicker rate than the
environment.
In addition to learning organization concept, the hotel business of Rajabhat
Universities have also adopted the concept of knowledge management (Nonaka
1994, Grant 1996b, Spender 1996, Foss 1997, Teece et al. 1997, Alavi and Leidner
2001, Nonaka et al. 2003). Literature reviews find that knowledge management
influences operating performance of an organization. Baker and Sinkula (1999)
concluded that knowledge management especially management of marketing
information related to customers and competitors, collection and transfer of customer
and competitor information to all business units of an organization, and the ability to
respond to the information are related to operating performance of an organization,
market share, and success of new product . Isobe et al. (2008) found that companies
in Japan are capable of using the information to achieve operating efficiency,
comprising 1) higher profits and 2) more efficient manufacturing process than their
competitors. When considering knowledge management as a managing tool, IseriSay et al. (2008) found that knowledge management affects competitive position,
capability, and adaptability of an organization, customer’s satisfaction, operating
performance, as well as the overall performance. Moreover, with respect to applying
knowledge management to various activities of an organization, Albors et al. (2008)
found that service-providing organizations which focus on knowledge base would
have better competing capability and economic performance. This corresponds with
the research by Harlow (2008) which found that applying tacit knowledge in activities
has positive relationship with financial performance.
The researcher has applied the concept of balanced scorecard (BSC) of Kaplan and
Norton (1992) in examining operating performance, both financial and non-financial,
of Rajabhat Universities in 4 dimensions, namely, operating performance in terms of
financial, customer, internal process, and learning and growth.
With the aforementioned reasons, the researcher, as one of Rajabhat Universities’
personnel, is interested in examining the relationship of learning organization,
knowledge management and their effects on operating performance in terms of
financial, customer, internal process, and learning and growth in hotel business of
Rajabhat Universities in Thailand. The research results would bring about
recommendations to improve hotel business management of Rajabhat Universities in
Proceedings of 7th Asia-Pacific Business Research Conference
25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0
Thailand to enhance income and profit generating capability in the long run and
support the hotel business operation of Rajabhat Universities going forward.
2. Literature Review
Theoretically, many researches find that learning organization has great influence to
operation of an organization. (Harnandaz 2000, Collie 2002, Davis 2005, Chajnacki
2007, Herrera 2007). Learning organization concept is important to all organizations.
Moreover, learning organization concept would promote more sustainable
development of an organization, (Garvin 1998, Takeuchi and Nonaka 2004, Jones
2007). Learning organization would enhance learning capability and innovation so as
to achieve a specified objective as mentioned by Marquardt and Reynolds (1994)
that “under intense competition, learning organization is key to bring an organization
to success in operation”, and as mentioned by Marquardt (2002) that an
organization’s learning capability is key to lead an organization to become a learning
organization. In order to survive, an organization must keep on learning and adapting
at a quicker rate than the environment.
The concept of knowledge management (Nonaka 1994, Grant 1996b, Spender 1996,
Foss 1997, Teece et al. 1997, Alavi and Leidner 2001, Nonaka et al. 2003).
Literature reviews find that knowledge management influences operating
performance of an organization. Baker and Sinkula (1999) concluded that knowledge
management especially management of marketing information related to customers
and competitors, collection and transfer of customer and competitor information to all
business units of an organization, and the ability to respond to the information are
related to operating performance of an organization, market share, and success of
new product . Isobe et al. (2008) found that companies in Japan are capable of using
the information to achieve operating efficiency, comprising 1) higher profits and 2)
more efficient manufacturing process than their competitors. When considering
knowledge management as a managing tool, Iseri-Say et al. (2008) found that
knowledge management affects competitive position, capability, and adaptability of
an organization, customer’s satisfaction, operating performance, as well as the
overall performance. Moreover, with respect to applying knowledge management to
various activities of an organization, Albors et al. (2008) found that service-providing
organizations which focus on knowledge base would have better competing
capability and economic performance. This corresponds with the research by Harlow
(2008) which found that applying tacit knowledge in activities has positive
relationship with financial performance.
The concept of balanced scorecard (BSC) of Kaplan and Norton (1992) in examining
operating performance, both financial and non-financial in 4 dimensions, namely,
operating performance in terms of financial, customer, internal process, and learning
and growth.
Proceedings of 7th Asia-Pacific Business Research Conference
25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0
3. The Methodology and Model
Research Framework
Learning Organization
Performance
Learning Dynamic
Performance
Technology Support
Performance
for Learning
Motivation to Learn
Knowledge Management Business
Knowledge Acquisition
Financial
Knowledge Creation
Customer
Knowledge Storage
Knowledge Sharing
Knowledge Application
Internal Process
Performance
Learning and Growth
Performance
Chart 1 Illustration of Research Framework
H1
Learning
Organization
Knowledge
Management
H3
H2
Business
Performance
Chart 2 Research Assumptions
1. Scope of Content: This research examines factors affecting the performance of
Rajabhat Universities’ hotel business in Thailand with the following variables
1.1 Learning Organization with 3 indicators, comprising Learning Dynamic,
Technology Support for Learning, and Motivation to Learn.
1.2 Knowledge Management with 5 indicators, comprising Knowledge Acquisition,
Knowledge Creation, Knowledge Storage, Knowledge Sharing, and Knowledge
Application.
1.3 Business Performance with 4 indicators, comprising Financial Performance,
Customer Performance, Internal Process Performance, and Learning and Growth
Performance.
2. Sampling Scope: The sampling group in this research comprises board of
directors, managers, and staff of 33 Rajabhat Universities’ hotel business in
Thailand.
Proceedings of 7th Asia-Pacific Business Research Conference
25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0
3. Scope of Research Period
3.1 The period to examine factors affecting the performance of Rajabhat Universities’
hotel business in Thailand by means of studying relevant concepts, theories, and
researches, complemented with qualitative research technique of focus group
discussion among board of directors, managers, and staff of Rajabhat Universities’
hotel business in Thailand was during February to March 2013.
3.2 The period to collect information from a survey with the sampling group for
empirical study was during April-June 2013.
4. The method used to collect information for this research was by means of a
survey and group discussion, for which the researcher collected the information
herself from group discussion and distributed the survey as well as collected the
return survey via post.
5. Data Analysis : The researcher used an automate computer program to compute
statistical values from the survey information including Percentage, Mean, Standard
Deviation, Skewness, Kurtosis, and Pearson’s Product Moment Correlation
Coefficient, so as to analyze a structural model as well as factors affecting the
operating performance.
4. The Findings
Part 1 Analysis of Goodness of Fit Index of the relationship model of factors
affecting operating performance finds that the model corresponds with empirical
evidences, where the Chi-square (2) is 44.83, with degree of freedom (df) of 33 and
p-value of 0.08205 Goodness of Fit Index (GFI) equals 0.97, Adjusted Goodness of
Fit Index (AGFI) 0.94
Part 2 Analysis of factors affecting the business operating performance It is
found that business operating performance (BP) is directly affected by learning
organization (LO) where the direct effect equals 0.67 (with 0.01 statistical
significance), and is directly affected by knowledge management (KM) where the
direct effect equals 0.91 (with 0.01 statistical significance). In addition, business
operation performance (BP) is indirectly affected by learning organization (LO),
where the indirect effect equals 1.02 (with 0.01 statistical significance). Learning
organization (LO) is found to have the most direct effect from knowledge
management (KM) as illustrated in Chart 3 and Table 1.
Proceedings of 7th Asia-Pacific Business Research Conference
25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0
Chart 3 Illustrations of Variables in the Relationship Model of Factors Affecting
Business Operating Performance
Table 1 Analysis of Factors Affecting Business Operating Performance
(Direct effect, Indirect effect, and Total effect)
Factors
Effect
Learning Organization
Knowledge Management
Knowledge
Management
TE
IE
DE
0.91**
0.91**
(0.06)
(0.06)
-
Business
Performance
TE
IE
DE
0.13**
1.02**
0.67**
(0.18)
(0.17)
(0.06)
0.15**
0.15**
(0.02)
(0.02)
Note: *p  0.05 **p  0.01
5. Summary and Conclusions
(1) When Rajabhat Universities’ hotel business become a learning organization with
respect to learning dynamic, technology to support learning, and motivation to learn,
the business operating performance of Rajabhat Universities’ hotel business would
improve. The result is in line with research literature e.g. the research of Herrera
(2007) which concluded that learning organization has influence to induce operating
performance of an organization, where each dimension of learning organization is
related to each dimension of operating performance of an organization. The research
of Davis (2005) investigated the relationship between learning organization and
operating performance of an organization and found that learning organization is
Proceedings of 7th Asia-Pacific Business Research Conference
25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0
highly related to operating performance of an organization, corresponding with the
research by Dave (2008) and Singer and Edmondson (2008).
(2) When Rajabhat Universities’ hotel business has knowledge management
capability with respect to knowledge acquisition, knowledge creation, knowledge
storage, knowledge sharing, and knowledge application, the business operating
performance of Rajabhat Universities’ hotel business would improve as well. The
result is in line with the research of Isobe et al. (2008) which found that small-andmedium enterprises in Japan that had knowledge management capability could
achieve operating efficiency, and the research of Iseri-Say et al. (2008) which found
that management techniques such as knowledge management could affect
competitive position, capability and adaptability of an organization, customer’s
satisfaction, financial performance and the overall performance. The result is also in
line with the research of Albors et al. (2008) which found that an organization that
undertakes knowledge-based activities would improve its competitiveness and
economic performance and the research of Harlow (2008) which found that
application of Tacit knowledge in various activities had positive correlation with
financial performance.
(3) When Rajabhat Universities’ hotel business becomes a learning organization
(with respect to learning dynamic, technology to support learning, and motivation to
learn), the business operating performance (in terms of Financial Performance,
Customer Performance, Internal Process Performance, and Learning and Growth
Performance) of Rajabhat Universities’ hotel business would improve as well. The
result is in line with the research of Collie (2002) which examined learning
organization and development in academic institutions in terms of operating
performance and found that learning organization influenced operating performance
of an organization, the research of Herrera (2007) which found that learning
organization induced operating performance both in terms of learning and financial
performance, and the research of Chajnacki (2007) which found that learning
organization affected operating performance of an organization where each
dimension of learning organization is related with various dimensions of operating
performance of an organization.
Recommendations
Recommendations with Respect to Management
(1) In order for Rajabhat Universities’ hotel business to have good operating
performance, the management responsible for business operations should place
importance to casual factor regarding learning organization to be used as a tool to
upgrade the operating performance. The management should support and promote
use of technology to support learning for convenience and speed of operation.
(2) In order for Rajabhat Universities’ hotel business to have good operating
performance, the management should place importance to casual factor regarding
knowledge management to be used as a tool to upgrade the operating performance.
The management should support knowledge acquisition and knowledge creation,
starting from supporting knowledge sharing among staff in various departments,
promoting selection of appropriate knowledge to share with other staff, and
knowledge storage by various media and use of information technology to store
Proceedings of 7th Asia-Pacific Business Research Conference
25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0
various data base that are ready for knowledge application, as well as promoting
staff to apply the knowledge in business operation by means of communication and
sharing of errors/mistakes.
(3) In order for Rajabhat Universities’ hotel business to have good operating
performance, the management should place importance to casual factors regarding
learning organization and knowledge management since both factors affect business
performance which would improve competitive advantage and competing capability
of Rajabhat Universities’ hotel business, thereby improving the competing capability
of an organization as well as its operating performance.
Recommendations with Respect to Future Research
(1) Future research should apply the model and variables of this research in other
businesses of the service sector to verify whether the model is in line with empirical
evidences.
(2) Future research should examine other factors that affect operating performance
of Rajabhat Universities’ hotel business such as innovation, leadership, and
corporate social responsibility.
End Notes
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Appendix